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Home » Manufacturing Grows in August

Manufacturing Grows in August

By    MDM  Staff 
September 1, 2010
More about:  Economic Trends
Production and employment indexes see largest increases for the month.
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Manufacturing continued to grow in August, according to the latest Manufacturing ISM Report on Business. The PMI registered 56.3 percent, an increase of 0.8 percentage point when compared to July.

August's expansion marks the 13th consecutive month for growth. The overall economy grew for the 16th consecutive month.

"In terms of month-over-month improvement, the Production and Employment Indexes experienced the greatest gains, while new orders continued to grow but at a slightly slower rate," said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

The Production Index increased 2.9 percentage points to 59.9 percent, while the Employment Index grew 1.8 percentage points to 60.4 percent. The ISM New Orders Index fell 0.4 percentage point in August, but continued to indicate growth at 53.1 percent.

Eleven of the 18 manufacturing industries reported growth in August, in the following order: Primary Metals; Apparel, Leather & Allied Products; Transportation Equipment; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Computer & Electronic Products; Paper Products; Chemical Products; Food, Beverage & Tobacco Products; and Printing & Related Support Activities. The five industries reporting contraction in August are: Furniture & Related Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Plastics & Rubber Products; and Machinery.

Respondents said:

  • "Still experiencing intermittent delays in electronic components due to capacity and raw materials." (Electrical Equipment, Appliances & Components)
  • "International sales are especially strong. Domestic business is solid." (Chemical Products)
  • "Orders and business still strong." (Primary Metals)
  • "Order rate has slowed some. Supplier capacity in general seems to be improved." (Machinery)
  • "Large customers reducing pull rates for production." (Computer & Electronic Products)
The full Manufacturing ISM Report on Business is available here.
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